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Why does it appear to be difficult to assess whether there is a direct or inverse relationship between inequality and economic growth?

Short Answer

Expert verified

It appears to be difficult to assess whether there is a direct or inverse relationship between inequality and economic growth.

Step by step solution

01

Introduction

The possibility of the connections between economic inequality and economic growth starts with a lower level of inequality and along these lines will in general become quicker and have longer times of growth than those with a more elevated level of inequality.

02

Explanation part (1)

Inequality implies divergence or inequality between public activity, economic construction, and dissemination among the people of a country. Economic inequality shed the light on the view of distinction on the boundary measurements like riches, pay, and utilization.

03

part (2)

Analyzing the consequences of negative and positive connections between inequality and economic growth, then, at that point, it implies that it can't give a superior explanation that serves inequality or counter the impacts on the economic growth

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